DEAR BOB: I read your articles religiously every week. If I understand your explanation of Internal Revenue Code 121 correctly, can I buy a house or condo, live in it at least 24 months, fix it up to increase its market value, and then sell it for a tax-free profit up to $250,000? If my understanding is correct, why don't individuals make a tax-free business out of buying fixer-upper houses, living in them for 24 months, and then selling at a tax-free profit after repairing them? What is the "catch?"– Roth R. DEAR ROTH: You understand Internal Revenue Code 121 extremely well. There is no "catch." Purchase Bob Bruss reports online. To qualify for this great tax exemption, you must own and occupy your principal residence an "aggregate" two of the five years before its sale. A single h...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.